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Home My WebLink About850039.tiff RESOLUTION RE: APPROVE OIL AND GAS DIVISION ORDER FROM MACEY AND MERSHON OIL, INC. , SUITE 2150 , 1600 BROADWAY, DENVER, COLORADO 80202 , AND AUTHORIZATION FOR CHAIRMAN TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, Weld County, Colorado, is the holder of a certain lease with Macey and Mershon Oil, Inc. , and WHEREAS, said lease covers land more particularly described as follows: Township 1 North, Range 65 West Section 2 , NWa Weld County, Colorado WHEREAS, Macey and Mershon Oil, Inc. has submitted an Oil and Gas Division Order on the subject property, and WHEREAS, Weld County is entitled to a one-eighth royalty interest on production, and WHEREAS, in order to receive said royalty interest, Weld County must execute said Division Order, a copy of which is attached hereto and incorporated herein by reference, and WHEREAS, said Division Order has been reviewed by the Weld County Attorney, Thomas O. David, and found to be in order, and WHEREAS, the Board deems it advisable to approve said Division Order on the parcel of land described herein. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Oil and Gas Division Order as submitted by Macey and Mershon Oil , Inc. , Suite 2150 , 1600 Broadway, Denver, Colorado 80202 , on the hereinabove described parcel of land be, and hereby is , approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said Division Order. or 6, 1 850039 Page 2 RE: OIL AND GAS DIVISION ORDER - MACEY AND MERSHON OIL, INC. The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 29th day of July, A.D. , 1985 . X7111 BOARD OF COUNTY COMMISSIONERS ATTEST: E(A4 WELD COUNTY, COLORADO Weld County Clerk and Recorder EXCUSED and Clerk to the Board Ja line Johnson, Chairman BC-, erm-lrt.< g. ,cog,/ Gene R. tner, Pro-Tem D puty County C e k APPROVED AS TO FORM: C.W. Irby, C---C--1-7 Go d County Attorney Frank ag i B 1078 DEC 02018825 07/29/85 13: $0. 00 1/002 AH20145825 F 1246 ,RY ANN FEUERSTEIN CLERK & .<ECORDER WELD CO, CO Oil and Gas Division Order MACEY & MERSHON OIL INC. Property Hudson #1 Suite 2150 1600 Broadway March 27 19 84 Denver, Colorado 80202 Each of the undersigned OWNERS guarantees and warrants he is the owner of the interest set out opposite his name on the reverse side hereof in oil and gas or the proceeds from the sale of oil and gas from the property described on the reverse side hereof, and until further written notice either from you or from us, the undersigned owner and all other parties executing this instrument hereby authorize you. your successors or assigns to receive and measure such sales in accordance with applicable governmental rules and regulations and to give credit as set forth on the reverse side hereof. The following covenants are parts of this instrument and shall be binding on the undersigned.their successors. legal representatives. and assigns. Oil: Oil sold hereunder shall be delivered f.o.b. to the carrier designated to gather and receive such oil, and shall become your property upon receipt thereof by the carrier designated by you or by any other purchaser to whom you may resell such oil. The term "oil" as used in this division order shall include all marketable liquid hydrocarbons. Should the oil produced from the herein described land be commingled with oil produced from one or more other separately owned tracts of land prior to delivery to the designated carrier,the commingled oil sold hereunder shall be deemed to be the interest of the undersigned in that portion of the total commingled oil delivered which is allocated to the herein described land on the basis of lease meter readings or any other method generally accepted in the industry as an equitable basis for determining the quantity and quality of oil sold from each separately owned tract. Such formula shall be uniformly applied to all owners of an interest in the tracts of land involved. Should the interest of the undersigned in the oil produced from the herein described land be unitized with oil produced from one or more other tracts of land,this instrument shall thereafter be deemed to be modified to the extent necessary to conform with the applicable unitization agreement or plan of unitization, and all revisions or amendments thereto,but otherwise to remain in force and effect as to all other provisions. In such event,the portion of the unitized oil sold hereunder shall be the interest of the undersigned . in that portion of the total unitized oil delivered which is allocated to the herein described land and shall be deemed for all purposes to have been actually produced from said land. You agree to pay for the oil sold hereunder at the price posted by you for oil of the same grade and gravity in the same producing field or area on the date said oil is received by you or the designated carrier. If you do not currently post such a price. then until such time as you do so.you agree to pay the price established by you. You are authorized to reduce the price by those truck. barge. tankcar.or pipe line transportation charges as determined by you. Should the oil sold hereunder be resold by you to another purchaser accepting delivery thereof at the same point at which you take title.you agree to pay for such oil based upon the volume computation made by such purchaser and at the price received by you for such oil, reduced by any transportation charges deducted by such purchaser. Quality and quantity shall be determined in-accordance with the conditions specified in the price posting You may refuse to receive any oil not considered merchantable by you. Gas: Settlements for gas shall be based on the net proceeds realized from the sale thereof.after deducting a lair and reasonable charge for compressing and making it merchantable and for transporting if the gas is sold off the property. Where gas is sold subject to regulation by the Federal Power Commission or other governmental authority,the price applicable to such sale approved by order of such authority shall be used to determine the net proceeds realized from the sale. Settlements:Settlements shall be made monthly by check mailed to the respective parties according to the division of interest herein specified at the latest address known by you. less any taxes required by law to be deducted and paid by you applicable to owners interest. Evidence of Title:The oil and gas lease or leases. and any amendents. ratifications.or corrections thereof, under which said gas and/or oil is produced are hereby adopted, ratified, and confirmed as herein and heretofore amended. In the event any dispute or question arises concerning the title to the interest of the undersigned in said land and/or the oil or gas produced therefrom or the proceeds thereof. you will be furnished satisfactory abstracts or other evidence of title upon demand. Until such evidence of title has been furnished and/or such dispute. defect, or question of title is corrected or removed to your satisfaction, or until indemnity satisfactory to you has been furnished, you are authorized to withold the proceeds of such oil or gas received and run, without interest. In the event any action or suit is filed in any court affecting the title to the interest of the undersigned in the herein described land or the oil or gas produced therefrom or the proceeds thereof to which the undersigned is a party,written notice of the filing of such suit or action shall be immediately furnished you by the undersigned, stating the court in which the same is filed and the title of such suit or action. You will not be responsible for any change of ownership in the absence of actual notice and satisfactory proof thereof. Contingent Interests: Whether or not any contingency is expressly stated in this instrument.you are hereby relieved of any responsibility for determining when any of the interests herein shall increase. diminish.terminate. be extinguished or revert to other parties as a result of the completion or discharge of money or other payments from said interest. or as a result of the expiration of any time or term limitation (either definite or indefinite), and. unless you are also the operator of the property. as a result of an increase or decrease in production, or as a result of a change in the depth, the methods or the means of production, or as a result of a change in the allocation of production affecting the herein described land or any portion thereof under any agreement or by order of Governmental authority. and until you receive notice in writing to the contrary,you are hereby authorized to continue to remit without liability pursuant to the division of interest shown herein Warranties: Working Interest Owners and/or Operators. and each of them, by signature to this instrument, certify, guarantee and warrant. for your benefit and that of any pipe line or other carrier designated to run or transport said oil or gas.that all oil or gas tendered here- under has been and shall be produced from or lawfully allocated to the herein described land in accordance with all applicable Federal, state and local laws.orders. rules and regulations. This instrument may be executed by one or more. but all covenants herein shall be binding upon any party executing same and upon his'heirs, devisees. successors.and assigns irrespective of whether other parties have executed this instrument. The undersigned agrees to save Macey & Mershon Oil Inc. harmless and indemnifies Macey & Mershon, its successors and assigns, from and against any and all loss, cost, damage, charge or expense which Weld County may suffer or incur on account of payments made to Weld County for 100% of the oil and/or gas as herein BO OF COUNTY COMMISSIONERS, WELD COUNTY, COLORADO provided. x x I(/ x 915 10th St. P.O. Box 758 Witness of Signature me Chairman pro fern Street or Box No. 4_6000813 x Greeley, CO 80632 r' Social Security (or Tax ID)Number City, State, Zip Witness of Signature i Name Street or Box No, • Attest: Social Security for Tax ID)Number City, State, Zip By: %a Name Street or Box No. YYY By Tax ID Number City, State, Zip 1 1 B 1078 REC ("''118825 07/29/85 13: 23 ^ $0.00 2/002 F 1247 MARY AN FEUERSTEIN CLERK & RECC ER WELD CO, CO Oil and Gas Division Order Property described as: Hudson #1 N/2 Section 2-T1N-R65W in Weld County. State of Colorado ,and commencing with First Runs, Credit To(Name of Owner) Division of interest Weld County, A Political Subdivision Before/After Payout of the State of Colorado c/o Board of County Commissioners .125 of 146.405/307.96=.0594253 LOR 915 10th Street Greeley, CO 80631 • • ?o� yc • ORR - Overriding Royalty Interest WI - Working Interest LOR. - Land Owner's Royalty PP - Production Payment April 30, 1985 MAY 31 198 Weld County, A Political Subdivision ----.— of the State of Colorado DREELEY. c/o Board of County Commissioners 915 10th Street Greeley, Colorado 80631 Re: Revenue Hudson #1 Well N/2 Section 2-T1N-R65W Weld County, Colorado Gentlemen: As you know, Macey & Mershon Oil Inc. drilled the Hudson #1 well in the N/2 of Section 2, Township 1 North, Range 65 West, Weld County, Colorado. The Hudson #1 well went into production on March 27, 1984, but we have not been paying revenue to Weld County to date, due to a title problem in which the surface owner (Wallace Young, et al) is claiming title to the minerals underlying the Weld County lease which Double Eagle conveyed to Macey & Mershon Oil Inc. However, we feel that enough time has passed for the surface owner to instigate legal action if he were truly serious about his claim of mineral ownership, and therefore, we have decided to go ahead and disburse revenue to Weld County. To protect ourselves from any legal action the surface owner may instigate in the future, whereby Macey & Mershon could be accused of mispayment of royalties, we have prepared the enclosed indemnifying division orders for your review and execution. If everything is acceptable to Weld County, please execute both copies of the division order and return one (1) copy to this office at your earliest convenience. We will then disburse revenue to Weld County during our next revenue paying period. Weld County currently has $19,778.18 in revenue in suspense from the Hudson #1 well. MACEY & MERSHON OIL INC. ni SUITE 2150 • 1600 BROADWAY • DENVER. COLORADO 80202 4970 • (303) 861-9183 Weld County April 30, 1985 Page 2 If you have any questions or problems with your division orders, please let us know. Otherwise, we will continue to hold your revenue in suspense until we receive your executed division order on this well. We sincerely appreciate your patience in this matter. Very truly yours, MACEY & MERSHON OIL INC. C Nanci Schroeder Landman Hello